The American Chamber of Commerce in Ukraine presents the results of its Survey "Doing Business after 120 days of War in Ukraine". It helps to assess the current state of business and key challenges as well as get a forecast on future operations of companies on the ground.
Despite the full-scale ongoing war, the business community continues to operate in Ukraine. 60% of AmCham Ukraine member companies are fully operational, 34% continue to work partially. Among the companies that continue to operate: 70% – provide services, 46% – import goods, 36% – have enough clients/orders, 25% – produce goods, 14% – export goods. 5% of companies put operations on hold, and 1% had to shut down totally.
AmCham Ukraine member companies continue to pay salaries after 120 days of the war. 57% pay full salaries and provide extra support, 25% pay full salaries, and 16% – partially reduced salaries. Only 2% could not pay salaries at all.
The business representatives were asked to indicate the biggest current challenges for their organizations. Safety and security of employees (81%), logistics and transport (55%), decline in partners' businesses (38%), export-import operations (36%), and absence of clients or orders (28%) were identified as the top-5 major challenges.
25% of respondents indicate that their company's plants/factories/facilities/storehouses/offices have been damaged: 65% of them have minor damage, 35% – unrepairable damage. 7% indicate that their company's assets are still under occupation. 63% of member companies had so far no damage during the war.
The most difficult question of the Survey was about the safety and security of employees. 70% of respondents said that all of their companies' employees are safe. Sadly, there were painful numbers also, with 16% of companies' having instances of employees injured (59 people) and 15% having instances of employees killed (42 people).
AmCham members were also asked to compare their companies' current business activity to the pre-war one. 34% of respondents evaluate the business activity of their organization as 50-70% of pre-war level, 30% as 25-50% of pre-war level, 22% as 70-80% of pre-war level. 8% had to completely or almost completely stop the business activity. 2% of respondents indicate that the business activity of their organization is higher than before the war.
AmCham member companies are ready to actively participate in Ukraine's post-war economic rebuilding by providing professional expertise (incl. working groups under the National Council for the Recovery of Ukraine from the War) – 62%, creating more workplaces for Ukrainian people – 53%, increasing investments – 42%. Among other ways: conduct pro bono work/projects – 38%, open new factories/plants/offices – 22%, rebuild damaged business assets – 21%, and donate to rebuilding funds (incl. United24 initiative) – 20%.
Companies were also asked about their plans for doing business in Ukraine in Q3-Q4 2022. 95% of AmCham members plan to continue operations: 94% – continue with war-specific adaptation, 34% – plan to implement cost-cutting efforts, 23% – plan to launch new services/directions, and 22% – are going to search for new clients outside Ukraine. 4% plan to reduce operations in Ukraine.
As for the forecast for 2023, the majority of businesses (70%) plan to continue operations in Ukraine. At the same time, 22% plan to review and extend operations, 2% – review and reduce operations. 1% – stop operations.
127 CEOs and top managers of AmCham member companies took part in the Survey, conducted from June 9 – June 21, 2022. 70% of the respondents are CEOs, 30% – top managers.
Andy Hunder, President of the American Chamber of Commerce in Ukraine, said: "After more than 120 days of the war, 60% of AmCham Ukraine member companies are fully operational, 34% continue to work partially. Despite the challenges, damages, deaths, and uncertainty brought by Russia's brutal war, Ukraine's business community continues to show bravery, unity, and resilience, employing people and supporting Ukraine's economy. Moreover, according to the survey results, 70% of businesses plan to continue operations in Ukraine in 2023. This gives us a positive signal for fast rebuilding after Ukraine's victory."
Full results of the Survey are available here.
About the American Chamber of Commerce in Ukraine:
The American Chamber of Commerce is Ukraine's most powerful international business association that has been serving members in Ukraine since 1992, delivering the shared voice of US, international and Ukrainian companies, who invested over $50 bln in Ukraine and remain committed to the country till today, during the war. For more information, please visit our website https://chamber.ua/ and Doing Business with Ukrainians page aimed at encouraging the US and global international companies to support Ukrainian businesses and employ Ukrainian talents.